NM BROKER BASIS Unit 7: Brokerage
Relationships UPDATED QUESTIONS WITH
CORRECT ANSWERS.
A broker helped the Mortons prepare an offer to purchase a three-bedroom home. The
Mortons asked the broker whether they should hold title as joint tenants or otherwise.
The broker should advise them to - CORRECT ANSWER✅✅consult an attorney
A broker is representing the property seller. She is showing the property to a
prospective buyer customer. The buyer likes the house but does not want to pay as
much as the seller wants. He asks the broker if the seller would take less than the listing
price. The broker knows that the seller is very anxious to sell and would probably agree
to $7,000 less than his asking price. The broker suggests that the buyer make an offer
at $5,000 less than the listing price. In this situation, the broker - CORRECT
ANSWER✅✅will be considered a designated dual agent
A broker presenting the property seller. An agent at the same firm is representing a
buyer. The two agents confer during a sales meeting and discover the compatible
needs of the clients. All of the following are true EXCEPT - CORRECT
ANSWER✅✅The broker-in-charge must designate two other brokers who did not
attend the meeting to represent the clients
A broker represents the seller at an open house. When should she disclose her agency
relationship to a potential buyer at the open house? - CORRECT ANSWER✅✅When
preparing an offer for the buyer
A broker-in-charge wishes to pay a provisional broker under her supervision for closing
a transaction. This is permissible if - CORRECT ANSWER✅✅The provisional broker is
property licensed
A buyer asks to be shown a broker's listing. The broker must - CORRECT
ANSWER✅✅disclose her agency relationship with the seller to the buyer
A buyer makes an offer to purchase a property listed with the XYZ Real Estate firm
using the service of an agent of ABC Realty, and the buyer does not agree to allow ABC
Realty to be a buyer's agent. The agent with ABC Realty immediately delivers the offer
to the listing agent. The listing agent schedules an appointment to present the offer to
the seller at 6 pm that day. The seller unconditionally accepts the offer at 6:15 pm. The
listing agent notifies the broker at ABC Realty that the offer has been accepted by
leaving a voicemail message. Before the ABC Realty agent retrieves the voicemail, the
, buyer withdraws the offer. In this situation, which of the following is FALSE? -
CORRECT ANSWER✅✅The seller may not unconditionally accept the offer
A listing agent owes what duties to a third-party buyer? - CORRECT
ANSWER✅✅Honesty, fairness, and disclosure of material facts
A listing broker is - CORRECT ANSWER✅✅the seller's agent
A listing broker must disclose his brokerage relationship with the seller to any
unrepresented buyer before - CORRECT ANSWER✅✅discussing any of the buyer's
confidential information
A North Carolina broker wishes to consummate a transaction where he represents
neither the buyer nor the seller. This relationship - CORRECT ANSWER✅✅is
prohibited in North Carolina
A North Carolina broker with an active listing would be required to disclose to a
prospective buyer which of the following as a material fact? - CORRECT
ANSWER✅✅Streets in the subdivision are privately maintained
A North Carolina listing agent has the seller's permission to practice dual agency. A
different agent with the listing firm holds an open house over the weekend. A
prospective buyer attends the open house but never shows an interest in the open
house property. The buyer begins to discuss his specific needs for property with the
agent hosting the open house. The agent must - CORRECT ANSWER✅✅Stop the
buyer's information sharing until they have reviewed the Working with Real Estate
Agents brochure and decided their agency relationship
A North Carolina listing broker holding an open house is informed by the buyer that the
buyer has signed a buyer representation agreement with another broker. The listing
broker should - CORRECT ANSWER✅✅disclose the listing broker's agency
relationship with the seller and show the buyer the house
A property manager is BEST described as a - CORRECT ANSWER✅✅general agent
A real estate agent's fiduciary obligations include which of the following? - CORRECT
ANSWER✅✅Skill and care to the principal
A real estate broker acting as the agent of the seller - CORRECT ANSWER✅✅is
obligated to render faithful service to the seller
A real estate firm who engages brokers as independent contractors must - CORRECT
ANSWER✅✅still supervise the brokers and remain civilly liable for the brokerage
activities of the brokers
Relationships UPDATED QUESTIONS WITH
CORRECT ANSWERS.
A broker helped the Mortons prepare an offer to purchase a three-bedroom home. The
Mortons asked the broker whether they should hold title as joint tenants or otherwise.
The broker should advise them to - CORRECT ANSWER✅✅consult an attorney
A broker is representing the property seller. She is showing the property to a
prospective buyer customer. The buyer likes the house but does not want to pay as
much as the seller wants. He asks the broker if the seller would take less than the listing
price. The broker knows that the seller is very anxious to sell and would probably agree
to $7,000 less than his asking price. The broker suggests that the buyer make an offer
at $5,000 less than the listing price. In this situation, the broker - CORRECT
ANSWER✅✅will be considered a designated dual agent
A broker presenting the property seller. An agent at the same firm is representing a
buyer. The two agents confer during a sales meeting and discover the compatible
needs of the clients. All of the following are true EXCEPT - CORRECT
ANSWER✅✅The broker-in-charge must designate two other brokers who did not
attend the meeting to represent the clients
A broker represents the seller at an open house. When should she disclose her agency
relationship to a potential buyer at the open house? - CORRECT ANSWER✅✅When
preparing an offer for the buyer
A broker-in-charge wishes to pay a provisional broker under her supervision for closing
a transaction. This is permissible if - CORRECT ANSWER✅✅The provisional broker is
property licensed
A buyer asks to be shown a broker's listing. The broker must - CORRECT
ANSWER✅✅disclose her agency relationship with the seller to the buyer
A buyer makes an offer to purchase a property listed with the XYZ Real Estate firm
using the service of an agent of ABC Realty, and the buyer does not agree to allow ABC
Realty to be a buyer's agent. The agent with ABC Realty immediately delivers the offer
to the listing agent. The listing agent schedules an appointment to present the offer to
the seller at 6 pm that day. The seller unconditionally accepts the offer at 6:15 pm. The
listing agent notifies the broker at ABC Realty that the offer has been accepted by
leaving a voicemail message. Before the ABC Realty agent retrieves the voicemail, the
, buyer withdraws the offer. In this situation, which of the following is FALSE? -
CORRECT ANSWER✅✅The seller may not unconditionally accept the offer
A listing agent owes what duties to a third-party buyer? - CORRECT
ANSWER✅✅Honesty, fairness, and disclosure of material facts
A listing broker is - CORRECT ANSWER✅✅the seller's agent
A listing broker must disclose his brokerage relationship with the seller to any
unrepresented buyer before - CORRECT ANSWER✅✅discussing any of the buyer's
confidential information
A North Carolina broker wishes to consummate a transaction where he represents
neither the buyer nor the seller. This relationship - CORRECT ANSWER✅✅is
prohibited in North Carolina
A North Carolina broker with an active listing would be required to disclose to a
prospective buyer which of the following as a material fact? - CORRECT
ANSWER✅✅Streets in the subdivision are privately maintained
A North Carolina listing agent has the seller's permission to practice dual agency. A
different agent with the listing firm holds an open house over the weekend. A
prospective buyer attends the open house but never shows an interest in the open
house property. The buyer begins to discuss his specific needs for property with the
agent hosting the open house. The agent must - CORRECT ANSWER✅✅Stop the
buyer's information sharing until they have reviewed the Working with Real Estate
Agents brochure and decided their agency relationship
A North Carolina listing broker holding an open house is informed by the buyer that the
buyer has signed a buyer representation agreement with another broker. The listing
broker should - CORRECT ANSWER✅✅disclose the listing broker's agency
relationship with the seller and show the buyer the house
A property manager is BEST described as a - CORRECT ANSWER✅✅general agent
A real estate agent's fiduciary obligations include which of the following? - CORRECT
ANSWER✅✅Skill and care to the principal
A real estate broker acting as the agent of the seller - CORRECT ANSWER✅✅is
obligated to render faithful service to the seller
A real estate firm who engages brokers as independent contractors must - CORRECT
ANSWER✅✅still supervise the brokers and remain civilly liable for the brokerage
activities of the brokers
